Insight

Royalty increase would be another blow for Indonesian coal mines

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

For further information about this report submit the form below.

Report summary

The Indonesian government is considering hiking royalties for IUP mines from 3 7% of revenue to 13.5%. We expect such an increase will raise cash costs by 9% and wipe out 20% of value from IUP mines. PTBA would be the worst affected of Indonesia's major producers with the value of the company's coal mines expected to decrease by more than US$1 billion. Ironically PTBA is 65% owned by the Indonesian government. The rationale for increasing royalties is to boost government revenue from the...

What's included

This report contains

  • Document

    Royalty increase would be another blow for Indonesian coal mines.xls

    XLS 108.50 KB

  • Document

    Royalty increase would be another blow for Indonesian coal mines

    PDF 434.75 KB

  • Document

    Royalty increase would be another blow for Indonesian coal mines

    ZIP 337.18 KB

Table of contents

  • Executive summary
  • Government considering IUP royalty increase to 13.5%
  • Impact on Indonesian mines
  • Impact on companies
  • Impact on government revenue
  • Rationale and consequences
  • Economic assumptions

Tables and charts

This report includes 4 images and tables including:

Images

  • Change in coal portfolio valuations for IDX listed companies if IUP royalties increase to 13.5%
  • Total government take from Indonesia's coal industry

Tables

  • Possible royalty change
  • Impacts of possible royalty change

You may be interested in

    
            
            
            
            
            
            
            
            
            
            
            
    

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898